THE IMPACT OF DIGITAL INFRASTRUCTURES AND TRANSPORTATION SERVICES ON ECONOMIC GROWTH: RECENT EVIDENCE FROM HIGH-, MIDDLE- AND LOW-INCOME COUNTRIES

Abstract

This study investigates the links between digital infrastructures (DI); transportation services (TS) and economic growth using simultaneous-equation panel data models for a panel of 62 countries for the period 2000-2018. The results indicate that there is evidence of bidirectional relationship between DI and economic process. Economic growth and TS are interrelated bidirectional relationship. Bidirectional link is validated between DI and TS for high-income and middle-income countries. Unidirectional causality is running from TS to DI for low incomes countries. These empirical insights are of particular interest to policymakers, working in low incomes countries. They help them to develop modern DI and TS to sustain economic development and to push substantial changes within the way of life and productivity. This has led to enormous technological advancement which is in line with but at a faster pace than the technological advancement of previous revolutions.